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Joint Campaign of Confederation & AISGEF against National Pension System and Outsourcing

February 10, 2018

JOINT CAMPAIGN OF CONFEDERATION & AISGEF AGAINST NPS AND OUTSOURCING – SIGNATURE CAMPAIGN FEBRUARY 10TH TO MARCH 10TH – COPY OF MEMORANDUM TO BE SUBMITTED TO PRIME MINISTER AFTER OBTAINING SIGNATURE

To

The Hon’ble Primie Minister of India

We, those who signed in this memorandum are state and central Government Employees of the country . We may submit the following burning issues of the state and central Government Employees for your kind consideration and disposal.

The system of pension as a social security benefit to the employees in Government sector in India has been existing since the early British days. After independence the pension system was further improved and family pension was also introduced . The Defined pension scheme for the government employees is a well-built scheme as the best of all social security benefits for the employees and they are not required to contribute anything for pension.

Government of India introduced contributory pension to employees those who entered in government service on or after 1.1.2004 .Majority of the state Government s also introduced the same for their employees. The Contributory Pension Scheme is totally depend on the profit and loss in the share market and Government have no control on the fund and it has nothing to do with the welfare of the employees or any individual or even Government finances.

The concept of pension as elaborated by the 4th Central Pay Commission, is ‘Pensions to the former members of armed forces and civilian employees of Central Government is not by way of charity on an ex-gratia payment, or a purely social welfare measure was totally changed by . It is in the nature of a “right” which is enforced by the law”. Later the concept was further strengthened by the Land mark Judgement delivered by the Supreme Court in 1982 in a Writ Petition filed by D.S.Nakara Vs the Union of India. Supreme court declared that the Pension is not only compensation for loyal service rendered in the past but has also a broader significance in that it is a measure of socio-economic justice which inheres economic security in the fall of life .The PFRDA Act is against the earlier ruling of the Supreme Court on the employees’ Right to Defined Benefit Pension as cited earlier.

There is no assurance, for getting pension ,except market based guarantee in NPS. The stock markets have never remained consistently strong over a long period of time. This volatility of stock market is a cause of serious concern about the sustainability of the National Pension Scheme itself.

The transition from this Defined Benefit Pension System to the Defined Contribution Pension System will make civil services more unattractive. Majority of State Governments are reluctant to remit the employer’s contribution to the pension fund. There is no assurance in getting the pension to the employees and workers.

For all these reasons, particularly the cut in salary and pension of the employees, absence of Government guarantee for retirement benefits in the National Pension Scheme and the distinct possibility of a sustainable Defined Benefit Pension System along with extension of social security system for the unorganised sector, we are not in a position to accept the National Pension Scheme. We strongly urge that a more in depth factual and analytical discussion is essential on National Pension System.

Contract Labour is one of the acute form of unorganized labour. Under the system of contract labour, workers are employed on the contract basis. The contract worker is a daily wager or the daily wages are accumulated and given at the end of the month. Contract workers are paid much lower wages than they would be entitled to under direct employment. This system led to whole-scale exploitation of labour, and a series of demands were made before tribunals for the abolition of contract labour system.

The system of employing contract labour is prevalent in civil service and in the services sector. The civil service has a major role in the smooth functioning of a Democratic Government. As part of overall development of the society and increase in population, the civil service also must be extended its wing. Education, Health, Public Transport, Communication, Welfare measure to women and children are all developed much. Numerous job opportunities have created round the world in Government Service.
The regular appointment to government sector ceased. Instead contract employment started. As such it is seen that the number of regular employees in the civil service are decreasing day by day, whereas the number of daily waged/contract/outsourced employees are increasing . By this time all the centrally sponsored schemes also emphasis on contract appointment. All the flagship programmes of Government of India are implementing with Daily waged/Contract/Casual appointment.

Bypassing UPSC and State Public Service Commission and Employment Exchanges which are the main recruitment agencies for central and State Governments, Unemployment among the educated youth is the main reason for Contract Employment. On contract employment the appointment is for limited monthly income. This is a kind of exploitation of labour.

The Supreme Court of India in a Land mark Judgment ruled that temporary employees performing similar duties and functions as discharged by permanent employees are entitled to draw wages at par with similarly placed permanent employees. The principle must be applied in situations where the same work is being performed, irrespective of the class of employees. The constitutional principle of ‘equal pay for equal work’ has been upheld by the Supreme Court of India.

Hence we appeal to the Hon’ble Prime Minister of India to take urgent measures to repeal the National Pension system and ensure defined pension to all employees and to regularise all Contract / Casual Employees and ensure equal wages for equal work for all employees including contract and casual employees. We appeal the Government of India to heed the demands of the employees in the country and take appropriate action in this regard.